None of Riau people qualified to manage CPP oil block

T. Amir Sulaiman, the president of PT Riau Petroleum, said the management and operation of the Coastal Plain Pekanbaru (CPP) oil block will require highly qualified professional.

Speaking at a meeting of the provincial branch of the association of the Indonesian young entrepreneurs (Hipmi), Amir admitted that none of Riau people is qualified to do the job.

?We have to admit that Riau has yet possessed a reliable oil expert to manage the CPP oil block. It is certainly wrong if every one coming from different disciplines will be able to the job,? he said.

The best solution for Riau is now how to prepare the younger generation to obtain expertise needed to manage the oil block so that the management control could be gradually transferred to the Riau people.

Riau recently approved the central government?s decision to extend PT Caltex Pacific Indonesia?s contract over the Coastal Plain Pekanbaru (CPP) oil block for another one year after the later agreed to provide a compensation to the local people.

President Megawati Sukarnoputri formally issued a decree early this month on the extension of the CPP contract, which ends in August, this month. But the decision was opposed by the local people due to the government?s refusal to meet its demand to control a majority stake in a joint venture that would manage the future operation of the oil block.

Last year, the government agreed to transfer the management of the CPP oil block to a joint venture between state owned oil and gas company Pertamina and the local administration. But the decision could not be implemented as the province insisted to becoming a majority shareholder in the joint venture.

In its decision, the government allocates 90 percent of the joint venture?s ownership to Pertamina and the other 10 percent to Riau. The share composition was rejected by Riau, which instead demands 70 percent in the company. (*)